Defense Startup Shield AI in Talks for Valuation of at Least $20 Billion

Shield AI, a startup building drones and AI-powered software for the military, is in talks to raise new funds at a valuation of at least $20 billion, according to a person with knowledge of the fundraise. The funding round, if it closes, would represent a roughly 60% increase to Shield’s valuation from just five months ago.

The planned funding round follows the 11-year-old company’s success winning contracts for its AI software that coordinates drones and aircrafts, called Hivemind, and comes as investors continue to pour money into startups that are building AI-powered weapons and defense systems.